1. Himachal Pradesh’s Pilot Project for Controlled Cannabis Cultivation

Context: The Himachal Pradesh government has approved a pilot project for the regulated cultivation of cannabis, aiming to unlock its medicinal and industrial potential. This initiative positions Himachal Pradesh as the fourth Indian state to permit cannabis cultivation, following Uttarakhand, Madhya Pradesh, and Jammu & Kashmir.

Why This Initiative?

Background & Legal Framework:

• Cannabis grows naturally across Himachal Pradesh, yet its cultivation was banned under the Narcotic Drugs and Psychotropic Substances (NDPS) Act, 1985.
• Recent amendments to the NDPS Act now allow states to regulate cannabis cultivation for medicinal and industrial applications under strict licensing and regulatory conditions.
• The project aims to identify suitable cannabis strains with a focus on non-narcotic uses like textiles, paper, food, cosmetics, and biofuel.

Global Cannabis Market & Himachal Pradesh’s Potential

Cannabis: A Trillion-Dollar Industry

• Countries such as Canada, the USA, France, Italy, China, Australia, and Denmark lead in hemp cultivation and the manufacture of cannabis-based products.
• Cannabis has been dubbed a “Trillion-Dollar Crop” due to its wide-ranging applications across multiple industries.
• With over 25,000 known industrial applications, Himachal Pradesh aims to tap into this lucrative market while ensuring strict regulatory compliance.

Industrial & Medicinal Potential of Cannabis:

Understanding Cannabis Sativa L. (Industrial Hemp):

• Cannabis contains over 100 cannabinoids, of which Tetrahydrocannabinol (THC) and Cannabidiol (CBD) are the most significant.
• THC is psychoactive, while CBD is non-psychoactive and offers multiple therapeutic benefits.

Applications Based on THC Content:

1. Industrial Use (THC < 0.3%):
   • Used in textiles, paper, biofuel, cosmetics, food supplements, and animal feed.
2. Medicinal Use (THC > 0.3%):
   • THC is used for treating chronic diseases such as Multiple Sclerosis, Crohn’s disease, Alzheimer’s, cancer, and chronic pain.
   • CBD has shown potential therapeutic effects in treating psychosis, epilepsy, inflammation, and neurodegenerative diseases.

Legality of Cannabis in India:

Key Legal Provisions:

1. International Conventions:
   • India follows the Single Convention on Narcotic Drugs (1961), which classifies cannabis alongside hard drugs like heroin.
2. Indian Constitutional & Legal Framework:
   • Article 47 (Directive Principles of State Policy) advises against harmful drugs and intoxicants.
   • NDPS Act, 1985 prohibits cannabis cultivation and use.
   • Section 14 of the NDPS Act allows the government to permit cannabis cultivation for horticultural and industrial purposes.
   • Bhang, made from cannabis leaves, is not prohibited under the NDPS Act and falls under state jurisdiction.

Controlled Cultivation & Economic Benefits:

Ensuring Responsible Cultivation:

• Only low-THC hemp varieties (<0.3% THC) will be cultivated to prevent misuse.
• The focus will be on industrial and medicinal applications rather than recreational use.
• Hemp’s stalks, leaves, and seeds will be processed into textiles, food, cosmetics, paper, and biofuel.

Economic & Revenue Impact:

• The project is expected to generate an annual income of ₹500 crore for Himachal Pradesh.
• Aligns with global trends, where countries like the US, Canada, and Germany have successfully leveraged regulated cannabis cultivation for economic growth.

Challenges & Roadblocks:

Regulatory & Implementation Concerns:

1. Ensuring Compliance:
   • Strict quality control measures must be implemented to prevent illegal diversion.
2. Market & Infrastructure Development:
   • Need for strong supply chains to support cannabis-based industries.
3. Public Perception & Awareness:
   • Overcoming societal stigma and raising awareness about the non-narcotic uses of cannabis.

Conclusion: A Step Toward Innovation & Economic Growth

Himachal Pradesh’s controlled cannabis cultivation initiative marks a progressive shift toward harnessing the economic, medicinal, and industrial potential of cannabis. If implemented effectively and responsibly, it could position the state as a leader in the global cannabis industry, driving economic growth, job creation, and industrial development while ensuring strict regulatory oversight.

2. RBI’s Liquidity Boost: Key Measures to Stabilize the Banking System

Context: The Reserve Bank of India (RBI) has announced enhanced liquidity measures to address the liquidity crunch in the banking system. These steps aim to inject liquidity, counter rupee depreciation, and stabilize monetary conditions.

Key Liquidity Measures by RBI:

1. USD/INR Swap Auction:

• RBI will conduct a six-month USD/INR buy/sell swap auction worth $5 billion on January 31, 2025.
• Under this, banks will sell US dollars to RBI in exchange for rupee liquidity, which will be reversed after six months with a premium.

2. Open Market Operations (OMO) Purchases:

• The RBI will conduct Open Market Operation (OMO) purchases of Government Securities (G-Secs) worth 60,000 crore.
• This will happen in three tranches of 20,000 crore each on January 30, February 13, and February 20, 2025.

3. Variable Rate Repo (VRR) Auction:

• A 56-day Variable Rate Repo (VRR) auction for 50,000 crore will be conducted.
• This marks the first time RBI is conducting such a long-tenor VRR auction.

Why These Measures?

Addressing the Liquidity Deficit:

• These steps will inject approximately 1.50 lakh crore into the banking system between January 30 and February 20, 2025.
• The liquidity shortfall is due to:
  • Rupee depreciation
  • Limited government spending
  • Tax outflows
• The current liquidity deficit is estimated at 3 lakh crore, necessitating immediate intervention.

Challenges in Liquidity Management:

1. Government Over-Borrowing
   • Excessive government borrowing and investing surplus cash can disrupt liquidity balance.
2. Weak Cash Management
   • Poor cash flow planning can lead to prolonged liquidity imbalances, affecting RBI’s ability to manage debt and monetary policy.

The Way Forward:

Stronger Coordination Between RBI & Government

• A coordinated fiscal approach is crucial to prevent liquidity shocks.

Flexible & Agile Liquidity Management

• RBI remains committed to dynamic liquidity management to ensure financial stability.

Market Monitoring & Policy Adjustments

• RBI will continuously monitor liquidity trends and take further action if needed to maintain orderly market conditions.

Conclusion

The RBI’s proactive liquidity measures highlight its commitment to stabilizing the financial system. By ensuring adequate liquidity, these steps will support economic stability, counter liquidity shortages, and strengthen financial markets.

3. India’s Own AI Revolution: Developing a Homegrown Large Language Model (LLM)

Context: The Indian government has embarked on an ambitious mission to develop its own Large Language Model (LLM) as part of the ₹10,370 crore IndiaAI Mission. This initiative aims to build a homegrown AI ecosystem tailored to India’s diverse languages, culture, and needs.

Key Highlights of India’s AI LLM Project:

1. Indigenous AI Model Development:

• The project focuses on creating an India-specific AI system that truly represents the country’s linguistic and cultural diversity.
• The development of the foundational model is expected to take 4-8 months.
• The government’s AI compute facility will be among the most cost-effective globally.

2. Infrastructure & GPU Supply:

• 10 companies have been selected to supply 18,693 high-end GPUs (Graphics Processing Units), which are crucial for training AI models.
• GPUs are used for large-scale data processing, machine learning, and deep learning applications.
• Plans are in place to set up AI data centers in Odisha, fostering AI-driven research and innovation.
• By making high-performance GPUs available, students and researchers will have the tools to develop large-scale AI models rather than working in fragmented, ad-hoc setups.

IndiaAI Mission: Transforming AI Development:

Key Initiatives Under IndiaAI Mission:

Over the next five years, the mission will support:

• IndiaAI Compute Capacity
• IndiaAI Innovation Centre (IAIC)
• IndiaAI Datasets Platform
• IndiaAI Application Development Initiative
• IndiaAI FutureSkills Program
• IndiaAI Startup Financing
• Safe & Trusted AI Framework

Objective:

The mission aims to:

• Foster India’s leadership in AI globally.
• Promote technological self-reliance.
• Ensure ethical and responsible AI deployment.
• Make AI benefits accessible across all sections of society.

What Are Large Language Models (LLMs)?

LLMs are advanced AI models designed to understand and generate human language using deep learning techniques.

Applications of LLMs:

• Text Generation
• Language Translation
• Summarization & Content Creation
• Conversational AI (Chatbots, Virtual Assistants)

Why India Needs Its Own AI Model?

1. Reducing Dependence on Foreign AI: Developing an indigenous AI model will help India reduce reliance on foreign tech and boost self-sufficiency.
2. Enhancing Data Security & Privacy: A domestically built AI ensures better control over data, minimizing risks associated with data privacy and misuse.
3. Supporting India’s Linguistic Diversity: The LLM will be designed to support multiple Indian languages, ensuring inclusivity and accessibility.
4. Eliminating Biases in AI: India’s AI model will be trained to reflect the country’s true diversity, eliminating cultural or ideological biases found in foreign AI systems.

Conclusion:

India’s move to develop its own AI-powered Large Language Model marks a game-changing shift in its technological landscape. With cutting-edge infrastructure, government support, and a focus on innovation, this initiative will position India as a global leader in AI, driving economic growth, digital transformation, and technological independence.

4. SC Bans Manual Scavenging in Six Major Cities – A Historic Verdict

Context: The Supreme Court of India has issued a landmark ruling, prohibiting manual scavenging and manual sewer cleaning in six metropolitan cities. This decision comes in response to a writ petition aimed at eradicating this inhumane practice across the country.

5. National Critical Mineral Mission (NCMM)

Context: The Union Cabinet has approved the launch of the National Critical Mineral Mission (NCMM) with an estimated expenditure of 16,300 crore. This mission aims to accelerate the regulatory approval process for critical mineral mining projects in India.

Mission Objectives:

The NCMM is designed to cover the entire value chain of critical minerals, including:

• Exploration
• Mining
• Beneficiation
• Processing
• Recovery from end-of-life products

Key Features:

• Establishment of mineral processing parks to support the recycling of critical minerals.
• Encouraging research in critical mineral technologies by setting up a Centre of Excellence on Critical Minerals.
• Development of a strategic stockpile of critical minerals within the country.
• Promoting Indian PSUs and private sector companies to acquire critical mineral assets abroad and strengthen trade with resource-rich nations.

What Are Critical Minerals?

Critical minerals are essential for economic development and national security. They are crucial for technological advancements in various industries, including:

• High-tech electronics
• Telecommunications
• Transportation
• Defense sector

Challenges in Supply Chain:

Due to the limited availability and geographical concentration of these minerals, supply chain vulnerabilities have emerged. This necessitates the development of value chains for minerals critical to India’s growth.

Applications of Critical Minerals:

1. Clean Energy Technologies:
   • Zero-emission vehicles
   • Wind turbines
   • Solar panels
2. Advanced Manufacturing:
   • Batteries (Cadmium, Cobalt, Lithium)
   • Semiconductors (Gallium, Indium, Selenium)
   • Permanent magnets and ceramics
3. Defense & Electronics:
   • New-age technologies (Beryllium, Titanium, Tungsten, Tantalum)
   • Medical devices and cancer treatment (Platinum Group Metals – PGMs)

India’s List of Critical Minerals:

India has identified 30 critical minerals, including: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, Phosphorous, Potash, Rare Earth Elements (REE), Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium, and Cadmium.

Global Collaboration: Minerals Security Partnership (MSP):

India is a member of the Minerals Security Partnership (MSP), which includes 23 global partners such as the US, EU, Japan, Australia, Canada, and others. This partnership aims to facilitate public and private investments in critical mineral supply chains worldwide.

India’s Initiatives to Secure Critical Minerals:

1. Mines and Minerals (Development and Regulation) Act, 1957: Amended in 2023 to promote exploration and mining of critical minerals.
2. Geological Survey of India (GSI):

• Conducted 368 exploration projects in the past three years.
• 195 projects currently underway in FY 2024-25.
• Plans for 227 new projects in FY 2025-26.

3. KABIL (Khanij Bidesh India Ltd.): A joint venture under the Ministry of Mines, acquiring 15,703 hectares in Argentina’s Catamarca province for Lithium exploration.
4. Custom Duty Reforms: The Union Budget 2024-25 eliminated custom duties on most critical minerals, encouraging the establishment of processing facilities in India.

Future Roadmap:

India is actively collaborating with resource-rich countries to secure its mineral supply:

• Tanzania – Niobium, Graphite
• Zimbabwe – Lithium
• Congo & Zambia – Copper, Cobalt

With India’s commitment to energy transition and achieving net-zero emissions by 2070, securing a steady supply of critical minerals will be pivotal for sustainable economic growth and technological advancement.

6. Liquid Propulsion Systems of ISRO

Context: Recently, ISRO appointed M. Mohan as the Director of the Liquid Propulsion Systems Centre (LPSC) in Thiruvananthapuram.

Understanding Liquid Propulsion Systems:

Liquid propulsion systems utilize liquid propellants, such as Liquid Oxygen (LOX) and Liquid Hydrogen (LH2), to produce thrust. These systems offer several advantages over solid propulsion, including:

• Higher efficiency
• Better controllability
• Capability to restart multiple times

ISRO’s Liquid Propulsion Systems Centre (LPSC):

The LPSC is a key ISRO facility dedicated to the design, development, and implementation of liquid propulsion stages for launch vehicles. It operates through two major centers:

• Thiruvananthapuram (Valiamala) – Focuses on rocket propulsion
• Bengaluru – Specializes in satellite propulsion systems

Recent Developments in Liquid Propulsion:

1. Gaganyaan Mission:

• ISRO has incorporated advanced liquid propulsion in the Crew Module for the first uncrewed mission of Gaganyaan.
• The Crew Module Propulsion System (CMPS) is a bi-propellant-based Reaction Control System (RCS) that ensures precise three-axis control (pitch, yaw, and roll) during descent and re-entry.

2. Cryogenic Upper Stage for GSLV:

• ISRO has indigenously developed a cryogenic upper stage for the Geosynchronous Satellite Launch Vehicle (GSLV).
• This development has significantly boosted India’s capability to launch heavier payloads into space.

3. Satellite Propulsion Systems:

• The LPSC is also responsible for the development of propulsion systems for satellites.
• This includes monopropellant thrusters and components for satellite control and maneuvering.

Conclusion:

India’s advancements in liquid propulsion technology have bolstered its space exploration capabilities, making ISRO a global leader in rocket and satellite propulsion. The LPSC continues to play a pivotal role in enhancing India’s space missions with cutting-edge propulsion technologies.